WRIGHT, CALVIN vs KHUU, JOHN

Discussion

Negligence and Breach of Fiduciary Duty Causes of Action The allegations in the first amended complaint ("FAC") are sufficient to support the negligence and breach of duty causes of action. Previously, the Court debated whether to sustain or overrule the demurrer to these claims. With the expanded underlying allegations, the pleading of these causes of action now survives demurrer.

Plaintiff now alleges an expanded historical background asserting that the development has been troubled since at least 2008. (FAC P. 20.) Plaintiff alleges that since 2019, the Western Hills Water District ("WHWD") has run a monthly operational shortfall of between $150,000 to $200,000. (FAC P. 21.) Plaintif further alleges that the WHWD has been unable to pay Kern County basic water charges. (Id.) "In December 2020, residents of Diablo Grande took control of WHWD. By August 2023, WHWD foreclosed on properties due to both World International and angel investor Angel Crossing's failure to pay special taxes." (Id.)

The reasonable inference from the allegations (which must be drawn in the Plaintiff's favor on demurrer) is that any competent realtor would have been aware that Diablo Grande was a troubled development and would have warned his or her client about these issues. Plaintiff bought his house in September 2023; the WHWD foreclosures occurred a month before his purchase and likely during the time when Plaintiff was actively looking for a home.

Negligent Misrepresentation Moving Defendants group the third cause of action for negligent misrepresentation and fourth cause of action for fraud (concealment) together in arguing that the causes of action still lack specificity. (See Mem., at pp. 11-12.) Plaintiff contends that negligent misrepresentation is subject to a less stringent pleading standard but cites no authority in support of this proposition. (See Opp., at p. 5.)

"The elements of negligent misrepresentation are '(1) the misrepresentation of a past or existing material fact, (2) without reasonable ground for believing it to be true, (3) with intent to induce another's reliance on the fact misrepresented, (4) justifiable reliance on the misrepresentation, and (5) resulting damage.' [Citation.] While there is some conflict in the case law discussing the precise degree of particularity required in the pleading of a claim for negligent misrepresentation, there is a consensus that the causal elements, particularly the allegations of reliance, must be specifically pleaded. [Citations.]" (National Union Fire Ins. Co. of Pittsburgh, PA v. Cambridge Integrated Services Group, Inc. (2009) 171 Cal.App.4th 35, 50 [emphasis added].)

The particularity requirement "necessitates pleading facts which show how, when, where, to whom, and by what means the representations were tendered." (Lazar v. Superior Court (1996) 12 Cal.4th 631, 645 [emphasis in original].)

Regarding the third cause of action, the FAC contends: "53. During the transaction and prior to close of escrow, Defendants represented to Plaintiff, expressly and/or by providing misleadingly incomplete advice and information, that Plaintiff could proceed with the purchase without disclosure of material adverse facts regarding water service and community amenities thereby implying no such material adverse facts existed or warranted disclosure. "54. Those representations were false or misleading because Defendants omitted material facts that rendered their advice and information misleading, including the water availability issues and amenity closure/unavailability alleged herein. "55. Defendants had no reasonable grounds for their representations and omissions. "56. Plaintiff reasonably relied and suffered damages according to proof."

The "how," "where," and "by what means" still seem to be missing. Furthermore, the "what" is vague. Regarding the "what," Plaintiff is alleging "express representations and/or misleadingly incomplete advice." But Plaintiff was present for these interactions and should be able to assert what express misrepresentations the realtor made or what advice and information she provided that was "misleadingly incomplete." Furthermore, it is not clear from the allegations whether Plaintiff is referring to misrepresentations or incomplete information regarding the issue of water service in general or the issue of the available amenities. For the foregoing reasons, the cause of action for negligent misrepresentation is still insufficient.

Fraud (Concealment) The fourth cause of action alleges as follows: "59. Defendants concealed and suppressed material facts, including: a. serious water service and water availability issues affecting the Property/community, including delinquent obligations, shut-off risk, and substantial rate increases; and b. the closure/unavailability of the clubhouse and/or public swimming pool. "60. Defendants had a duty to disclose because Defendants were Plaintiff's fiduciaries and agents, had superior access to material information, knew Plaintiff was relying on them, and their partial advice and information without full disclosure was misleading. "61.

Plaintiff is informed and believes, and thereon alleges, Defendants intentionally concealed these material facts to induce Plaintiff to proceed and close escrow. "62. Plaintiff reasonably relied and would not have purchased, or would have paid less, had Plaintiff known the concealed facts. "63. Plaintiff suffered damages according to proof."

Some of the classic particularity factors for the fraud cause of action as set forth in Lazar, supra, are still missing.

Leave to Amend

Plaintiff may be able to state viable causes of action. The Court therefore grants one last opportunity to amend. Amended complaint to be filed in 10 days.

b) Motion to Strike The motion to strike is DENIED as MOOT. However, the Court also notes that the motion is procedurally defective; the motion itself fails to specify the portions of the pleading at issue.

CV-26-004269 - BETHEL, KENNETH vs NEW CENTURY CONSTRUCTION & CONSULTING INC - Petitioner's Verified Petition for Release and Expungement of Mechanic's Lien and for Attorney's Fees and Costs - HEARING REQUIRED. A hearing is required on this matter.

Under the statutory procedure governing petitions to release property from an expired mechanic's lien, the petition and compliance with the hearing and service requirements are deemed controverted, and Petitioners bear the burden of producing evidence on those matters. (See Civ. Code, Sec. 8488(a).) No opposition is showing in the court file. Therefore, should Petitioners meet their initial burden of production, the Court is inclined to GRANT the petition.

Request for Judicial Notice The unopposed request for judicial notice is GRANTED.

Attorneys' Fees and Costs Pursuant to Civil Code Sec. 8488(c), if Petitioners prevail, they are entitled to their reasonable attorneys' fees and costs. Here, Petitioners have requested $2,532.50. This amount comprises $1,972.50 in fees and costs including court filing fees of $435.00; online processing and service fees of at least $30.00; and County Recorder recording fees estimated at $95.00. The Court will discuss this request with the parties at the hearing.

Proposed Order If the Court grants the petition, Petitioners shall be expected to submit a proposed order that conforms to the Court's ruling and that contains all the information required by Civil Code Sec. 8490(a) within five court days.

The following are the tentative rulings for cases calendared before Judge Stacy P. Speiller in Department 22: ***There are no tentative rulings in Department 22***

The following are the tentative rulings for cases calendared before Judge Clifford Tong in Department 23:

CV-24-008187 - GUILLEN, CLAUDIA vs BELMARE SENIOR LIVING LLC - a) Plaintiff's Motion to Compel Defendant Belmare Senior Living LLC to Provide Further Responses to Requests for Production of Documents, Set One; Request for Sanctions Against Defendant and its Counsel of Record, Jointly and Severally, in the Amount of $7,260.00 - CONTINUED, on the Court's own motion, to June 30, 2026 at 8:30 a.m. in Department 23. b) Plaintiff's Motion to Compel Defendant Belmare Senior Living LLC to Provide Further Responses to Requests for Admissions, Set One and to have Requests Nos. 4, 6, 20, 24-33 Deemed Admitted Against Defendant Belmare Senior Living LLC; Request for Sanctions Against Defendant and its Counsel of Record, Jointly and Severally, in the Amount of $7,260.00 - CONTINUED, on the Court's own motion, to June 30, 2026 at 8:30 a.m. in Department 23.

a-b) These matters are CONTINUED, on the Court's own motion, to June 30, 2026 at 8:30 a.m. in Department 23. The Court notes that additional further responses to Plaintiff's Requests for Production of Documents were served on 5-14-26, and Defendant indicates willingness to continue to meet and confer with regard to additional further responses to the Requests for Admissions. Therefore, the Court believes the potential exists for the parties to resolve and/or narrow the disputes herein if additional meet and confer attempts are made in good faith. The hearings are continued for this purpose.

The parties shall submit a Joint Status Statement by June 23, 2026, describing their further efforts to resolve the issues and briefly stating their respective positions on any items remaining in dispute. Lastly, the Court reminds counsel that discovery is intended to be self-executing, and good faith communication should involve serious efforts at informal negotiation and resolution, not mere bickering between counsel. (See,